The rapid adoption of automation technologies and increased e-commerce and trade is pushing retail and logistics enterprises to aggressively invest in logistics robots
The global logistics robot market is expected to register a CAGR of 21.3% growth in terms of value to reach USD 18.58 billion by 2026, up from USD 15.28 billion in 2019, according to the latest study by Reports and Data.
The trigger for this growth is the rapid growth of the e-commerce sector, primarily driven by advancement in internet penetration and a rising preference for online shopping. For e-commerce firms, the challenge is continuously improving the packaging quality and meeting timely delivery to get a competitive edge over brick and mortar retail stores. Factors including demand for flexibility, more stock-keeping units (SKUs), and rapid returns processing drive the need for logistics automation in e-commerce.
The last few years have witnessed increased adoption of logistics robots to automate the storage and movement of goods as they pass through the supply chain. These robots are often used in warehouses and storage facilities to organize and transport products, but they may also be deployed in applications.
"Logistics robots are flexible and easy to incorporate owing to their ability to work safely along with human workers while upholding high levels of autonomy. Stringent safety norms and regulations are pushing firms to employ robots for dangerous and hazardous atmospheres," says the study. It adds that the demand for automation across enterprises, especially in manufacturing firms and defence and military fields, is proliferating. Enterprises are leveraging next-gen technologies such as artificial intelligence and machine learning to save time, reduce cost and deliver exceptional quality products.
The study cautions that high investment in R&D and a high initial cost of logistics robots may create hindrances in the market's growth in the forecast period.